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VW Reaches Diesel Deal With U.S., Will Buy Back Or Fix TDIs

Breaking news on the Volkswagen diesel scandal front on this Thursday.

The automaker and the U.S.government have reportedly reached a deal in principle that would essentially settle the automaker’s diesel violations. The plan includes VW’s offer to buy back some models and also have some vehicles modified, or fixed, pending additional government testing and approval.

The plan does not outline specific government fines or expected additional financial compensation for diesel owners. Those monetary details are still being worked out. A full detailed agreement is due on June 21.

The news comes in wake of VW’s court appearance in San Francisco earlier Thursday. The company was slated to give U.S. District Judge Charles Breyer an update on its plans to fix roughly 500,000 2.0-liter VW and Audi diesels that contain a defeat device that allowed them to cheat U.S. emissions tests.

It includes “substantial compensation” for the affected owners regardless of which option they choose.

VW will also establish a fund to remediate environmental damage caused by the excess nitrogen oxide emissions released by the affected vehicles as part of the deal, Breyer said.

VW also will be “required” to commit funds to promote green vehicle technologies.

VW calls the tentative agreements an “important step” towards “making things right”. The automaker says it is “committed” to earning back the trust of customers, dealers, regulators and the public.

“Volkswagen intends to compensate its customers fully and to remediate any impact on the environment from excess diesel emissions,” the company said. “As noted today in court, customers in the United States do not need to take any action at this time.”

The tentative deal comes after weeks of negotiations between VW, the U.S. Department of Justice, California’s Air Resources Board, the U.S. EPA, Federal Trade Commission and attorneys representing U.S. owners of VW diesels who have sued the automaker over the emissions scandal. However, this deal is expected to put an end to 600 lawsuits filed by owners.

Note, the deal does not apply to about 80,000 3.0-liter V-6 diesels used in VW, Porsche and Audi models.